An update on the South African proposal to require non-resident e-services suppliers to register for VAT.
The effective date for the new rules has been stretched out to 1 June 2014 (an extension of 2 months) to allow businesses more time to get ready. Registration is open however from 7 April for those wishing to beat the rush.
Following consultation the scope of services caught by the new registration requirement has been narrowed in an attempt to exclude some common business to business transactions. This should eliminate some unnecessary compliance obligations for businesses and the South African tax authority.
This is clearly a work in progress for the South African government, as it is for every other country, so more changes to the detail are expected (such as to the registration threshold for example). They intend to continue with a wider review on the taxation of electronic services, particularly in the financial services sector.
You can read more about this here: http://www.treasury.gov.za/comm_media/press/2014/2014032801%20-%20Press%20Release%20-%20Electronic%20Services%20Regulations.pdf